OTT in metaverse: Is it best of both worlds for brands?

Even while all eyes are on the 2023 season of the IPL, THE marquee TV event of the year, Disney, the official broadcaster, has forayed into the metaverse with ‘Starverse’.

Recent industry predictions suggest that the metaverse market will be worth around $80 billion by 2024.

Pooja Chhangani, Manager – Digital Planning, Carat India, says: “With major investments in the metaverse infrastructure and gaming being the mainstream traction in this universe, the speculated long-term rise of Crypto wallets on metaverse platforms, and the perpetually rising influencer-led marketing, the brand marketing and engagement scene is all shifting gears towards being consumer-driven. All of this bodes well for the growth of metaverse.”

“Today’s consumer is demanding immersive metaverse experiences, and the meaning of entertainment is slowly changing. Real-world characteristics are being merged with the digital world, and we can already see the difference in the gaming industry. The OTT world must pick up arms and be ready to pop,” she added.

As for Mitesh Kothari, Co-founder and CCO, White Rivers Media, it is the mingling of the two worlds that excites him. “Today we are living in an era of digital dependency, be it for shopping, working, learning, playing, or even connecting with people.” With advancing technology, the line between the physical and the digital world is getting blurred day by day, and the metaverse is playing a pivotal role in this, he noted.

“Metaverse advertising offers a whole new landscape for us to help consumers engage with products better and have a highly personalised experience. Companies can efficiently reach a global consumer base for gaming, real-time product testing and purchases.”

According to latest reports, “The primary market for online game makers and gaming hardware may exceed $400 billion in 2024, while opportunities in live entertainment and social media make up the remainder.”

Vivek Kumar Anand, Director – Business and Innovation, DViO Digital, observes that Starverse is a natural progression for Disney and all other entertainment companies to provide an active, immersive, engaging experience.

“What is interesting to note over here is that Disney is planning to leverage sports properties for the starters, which coincides with the launch of the IPL 2023 and is a brilliant move,” he says, adding, “As we know, gaming platforms are already using the metaverse. They are uniquely positioned to be incredibly influential because of the community it has, which is anyway comfortable with the metaverse as technology and using it day in and day out for experiences like multiplayer gaming and virtual avatars.”

Chhangani says OTT platforms would want to target the metaverse for one basic reason – to reach the TG, viz Gen Z and millennials. Decentralization is the key, and organizations would want to soon create their own metaverse environments instead of relying solely on other traditional advertising platforms.

Amer Ahmad, Director of Technology at Blink Digital, says it would be interesting to see how these metaverse platforms are built - if they're just a gimmick or a truly immersive space where users can interact and learn more about their favourite content. “I think if they're able to achieve the latter then it would be a game changer, allowing these platforms to develop new monetary streams while allowing advertisers to really hone in on specific TGs.”

Kothari further said, “The dominance of Gen Zs in the digital sector is crucial for brands to consider for all their marketing efforts, and metaverse is a game-changer with this generation. We, at WRM, have joined hands with Web3 specialists Phyvital, and now have the unique opportunity to tap on this extraordinary technology in the world of advertising.”

Dewang Mulani, Associate Director, Business Development and Planning, MetaForm: the Web 3.0 Agency of the Zoo Media Network, notes that advertisers have a clear opportunity here primarily due to the audience overlap between OTT users and metaverse adopters.

“The post-broadband generation of Gen Z is digitally native and tech-savvy. Estimated to constitute 40% of the workforce by 2030, the quality of their brand experience influences their choice and dictates where their disposable income will be spent. The metaverse has witnessed evident success in engaging this cohort and is thus a perfect fit.”